The 2019 NDAA and its Effects on Small Business

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Written by Gloria Larkin

Recently, the President signed into law the John S. McCain National Defense Authorization Act (NDAA/ H.R. 5515) for Fiscal Year 2019, which included several provisions affecting government contractors. This annual NDAA process addresses military funding requirements and commits the Department of Defense (DoD) and other agencies to specific rules, regulations, and laws. Read below to see what changes were made to the 2019 NDAA and how it affects small businesses moving forward.

Micro-Purchasing

Section 821 of the 2019 NDAA increased the DoD micro-purchase threshold from $5,000 to $10,000, mirroring the current level for civilian agencies. This means any purchase under $10,000 per transaction may now be purchased from any size company. While the individual transaction value is small at under $10,000, over $30 billion of services and products are purchased through this method every year. This makes it a valuable tool for small businesses, even if mandated set-asides no longer apply. It is, however, necessary to use a proactive strategy to identify and market those sales opportunities.